Stocks jump unexpectedly - KWWL - Eastern Iowa Breaking News, Weather, Closings

Stocks jump unexpectedly


NEW YORK (AP) — Stocks jumped Wednesday to their best showing in nearly two months after surprisingly strong growth in U.S. and Chinese manufacturing relieved some worries that had been building over the global economy in recent weeks.

The Dow Jones industrial average jumped nearly 255 points on the first day of September.  The new reports snapped a string of disappointing economic data that sent stocks slumping in August.  

The Institute for Supply Management said manufacturing activity in the U.S. rose in August, in contrast to regional reports from recent weeks that pointed to a slowdown in growth. Economists had expected a decline.

The pace of growth in China's manufacturing sector also picked up in August, while economists expected a pullback.  Overseas markets rose after Australia said its economy grew in the second quarter at the fastest pace in three years.

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